Don’t Let Your Dream Home Slip Away

Have you ever walked into a home and fell in love with it, but then realized that you couldn’t afford the cost of the repairs? Don’t let your dream slip away. There is a little-known government program, the FHA 203K Renovation Program, which allows you to purchase your dream home without needing bundles of money in advance. Instead, the cost of necessary home repairs are rolled into your mortgage.

Learn if you qualify for the FHA 203 K Renovation Loan.

How does a FHA 203K rehab loan work?

The FHA 203K Renovation loan requires only 3.5% down and comes with lower income and credit restrictions than conventional loans. Properties are purchased “as is” and the repairs are completed after closing by an approved 203K licensed contractor.

There are a few requirements associated with an FHA 203k rehab loan. First, loan borrowers must be owner-occupants. Second, all FHA 203K approved contractors have had extensive background checks, are licensed and insured, and carry workman’s compensation insurance. Home Depot or Lowes do not meet the FHA contractor requirements. Finally, the homeowner cannot personally do any of the work included in the FHA 203K scope of work.

Eligible Improvements


Eligible improvements include but are not limited to:
RoofLandscaping irrigation
ACHandicap accessibility
PlumbingBedroom additions
ElectricalOpening floor plan
StructuralVaulting the ceiling
FlooringTermite damage and treatment
Kitchen remodelIllegal additions
Bath remodelEnergy efficient insulation windows
Solar hot water heaterand much more

Eligible Properties

Single family detached homes completed for at least one year.
1-4 unit multi dwellings that have been completed for at least one year.
Tear downs as long as the existing foundation remains in place.
FHA approved condos. Co-ops are not eligible.
Fee simple townhomes.
Fee simple villas.
Manufactured townhomes.
Planned unit developments.
Mixed use properties.


Can investors use FHA 203K rehab loans?

FHA 203K rehab loans require that the homeowner occupy the home for at least one year, so FHA 203K rehab loans are not an option for fix and flips. However, there is an opportunity for investors to use these loans as an incentive when selling their fix and flips. Here’s how: An investor purchases a property and does a prehab, not a rehab. A prehab means the property is cleaned out, but not renovated. The investor places the property back on the market and offers the rehab loan as an incentive to homebuyers. Many homebuyers are attracted to the opportunity to purchase a newly renovated home with the ability to select their own finishes.

Applying for an FHA 203K Loan

You will want to find yourself a lender who is highly experienced in FHA 203K loans. Not all lenders offer these loans. It may take a little extra legwork but in the end, it is well worth the effort.

In addition to the standard loan application requirements, the FHA 203K rehab loan will also require the following:

  • A scope of work which breaks down all the specific tasks and costs involved in the renovation process.
  • A subject-to appraisal which estimates the home’s value once the repairs and improvements are made.

Seeking an FHA 203K experienced lender?  Contact us!

The Bottom Line

Rehab loans are designed for “fixer-uppers”, therefore, this little known loan program will allow you to qualify for a home purchase that many other programs would not. If you are having difficulty finding a move in ready home in your price range, this is a prime opportunity to find a fixer upper, give it the TLC it needs, and build instant equity.

FHA 203K Certified Real Estate Agent
Gina Ursini
Team Ursini & Company
P: 941-812-4894

FHA 203K Approved Contractor
Mark Ursini
Founder and President of Brista Homes
P: 941-232-1948

How to Estimate the Costs of Your Renovations

Are you considering renovating a home, but unsure on what it will cost you?  We have just the tool for you! Offered by KuKun, this free remodeling calculator will estimate the renovation costs of your dream home.

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